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Recent events in Northamptonshire have hammered home the message that local government has reached a tipping point in terms of its finances. Anyone who thinks that the problems faced at the County Council are unique is in for a rude awakening. In this context is it time for a new municipalism?

With policy pressures piling up and budgets diminishing rapidly for many services it is time for local authorities to take back control of their areas by reclaiming entrepreneurship, rather than the outdated thinking that someone else should do this for them. This is not about acting commercially in the blind pursuit of income generation but to identify the major policy puzzles facing communities and thinking creatively and innovatively about how to solve these policy conundrums. Where markets have failed to deliver the outcomes that local communities need then it’s time for local councils to step up to the plate.

Commercialisation strategy 1.0 was very much about trading and charging, using some surplus capacity or getting additional benefits from assets during the 1980’s. Fast forward to today and version 10.0.3 of that strategy is hugely different in scope and range.

Of course local authorities have suffered heavily as a result of austerity and still face further huge financial challenges, not least an intention by Government to almost completely remove RSG by 2020, however impractical and unfeasible this may appear for many areas of the country.

There are some who criticise local government as being bureaucratic and lacking in creativity. In reality, local councils are being highly innovative in plugging the income gaps left by ongoing austerity and there is something of a renaissance in municipal investments.

APSE and CIPFA property services set out to identity the scale, scope and advantages of municipal investments and the results of our research have found councils taking a measured approach to investments designed to balance risk and rewards. In many ways asset investments allow councils to convert capital investment into revenue - helping them to sustain local services.

Commercialisation strategy 1.0 was very much about trading and charging, using some surplus capacity or getting additional benefits from assets during the 1980’s. Fast forward to today and version 10.0.3 of that strategy is hugely different in scope and range.

Of course local authorities face huge financial challenges, not least an intention by Government to almost completely remove RSG by 2020, however impractical and unfeasible this may appear for many areas of the country.

With the spending review completed and the annual financial settlements for local government across the UK done and dusted, we now know where budgets broadly stand, between now and 2020 and it’s taking local government expenditure to its lowest percentage of GDP since 1948.

The move to four year budgets in England will see significant further pain, on top of that already experienced, over the next couple of years, before a stabilisation in the latter years of that settlement. This of course optimistically assumes that there will not be a further recession during this period, high levels of house building will be achieved and the move to localise business rates will run smoothly and fairly.

A lively APSE meeting in Edinburgh yesterday with debates taking place on governance, environmental challenges, commercialisation and demand management. With over 60 delegates present including Chief Executives, Directors, Leaders and portfolio holders a healthy discussion flowed across all of the topics.

More and more councils are emphasising the development of commercial strategies and skills in order to hold services together and give them a fighting chance in the current age of austerity.

Some commentators may view local government, innovation and entrepreneurship as unlikely bedfellows. But I see evidence all over country that a commercial culture is expanding and flourishing amongst council staff.

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Promoting excellence in public services

APSE (Association for Public Service Excellence) is a not for profit unincorporated association working with over 300 councils throughout the UK. Promoting excellence in public services, APSE is the foremost specialist in local authority frontline services, hosting a network for frontline service providers in areas such as waste and refuse collection, parks and environmental services, cemeteries and crematorium, environmental health, leisure, school meals, cleaning, housing and building maintenance.